Manual Transmittal

Purpose

Material Changes

(1) Revised IRM 4.81.1 describes Tax Exempt Bonds program, goals and responsibilities. This IRM was revised to reflect the
new Tax Exempt Bonds Compliance and Program Management group structure.

Effect on Other Documents

This supersedes IRM 4.81.1 dated November 1, 2009.

Audience

TE/GE

Effective Date

(10-02-2012)

Clifford J. GannettDirector, Tax Exempt Bonds

4.81.1.1
(10-02-2012)TEB Program

The Tax Exempt Bonds (TEB) program is responsible for oversight, compliance and education related to arrangements that involve
debt instruments or obligations of States, their political subdivisions and other entities entitled to issue tax-exempt and
tax credit (including direct pay) obligations. These obligations include bonds, notes, installment sales, lease financing
arrangements, and any other qualified arrangements under sections 103, 54, 54A-F, 54AA, and 7871 of the Internal Revenue Code.
TEB also works closely with the Office of Associate Chief Counsel (FIP), the Office of Associate Chief Counsel (TE/GE), the
Department of the Treasury, other offices within the Internal Revenue Service and other regulatory agencies concerning guidance
and other matters impacting the tax-exempt bond community.

"Tax-exempt bonds"
are state or local bonds issued pursuant to section 103 of the Code, the interest on which is not included in the gross
income of the holders thereof for federal income tax purposes.

"Tax credit bonds"
are 1) qualified tax credit bonds issued pursuant to sections 54, 54A, and either section 54B, 54C, 54D, 54E, or 54F,
1397E and 1400N(l) of the Code; and 2) build America bonds issued pursuant to section 54AA for which holders of such bonds
are allowed credits against taxes with respect to a portion of the interest on such bonds.

Assist the Department of the Treasury and Chief Counsel in identifying issues on which public guidance is needed, in developing
Regulations and other published guidance of general applicability, and on various legislative matters.

4.81.1.3
(10-02-2012)Responsibilities

Each level of authority has specific as well as general responsibilities.

4.81.1.3.1
(10-02-2012)Office of the Director, Tax Exempt Bonds (TEB)

The Director, Tax Exempt Bonds, is responsible for:

Carrying out the TEB Program;

Coordinating and reviewing the activities of the Manager, TEB FO and the Manager, TEB CPM;

Reviewing voluntary closing agreements from Manager, TEB CPM;

Reviewing and executing closing agreements forwarded from field examinations by the Manager, TEB FO;

Approving compliance initiatives, such as information gathering and examination projects;

Reporting information, as appropriate and necessary, through both formal and informal means, to the Director, GE and to the
TE/GE Division Commissioner;

Approving and ensuring implementation of the annual work plan;

Reviewing published guidance proposed by the Office of Chief Counsel and the Department of Treasury to determine the administrability
of such guidance;

Coordinating with other functional areas;

Maintaining effective communications with the bond community to keep customers informed of TEB policies, procedures, laws
and regulations by partnering with stakeholders in the bond industry; and

Coordinating with the Securities and Exchange Commission (SEC) and other federal and state agencies.